ADM shares tumble on probe into nutrition unit

STORY: Shares of Archer-Daniels-Midland fell more than 20 percent in late morning trading Monday after the company placed its Chief Financial Officer on leave and cut its full-year profit forecast.

The global grains merchant said it is investigating certain accounting practices in its nutrition division which is already grappling with weak demand for meat alternatives.

It supplies a range of ingredients including plant-based proteins, natural flavors, emulsifiers to food, beverage and nutritional supplements industries, among others.

ADM initiated the investigation following an U.S. Securities and Exchange Commission request which it said would result in a delay in its fourth-quarter earnings release.

The SEC did not respond immediately to a Reuters request for comment.

At least four brokerages downgraded ADM’s stock as they look for clarity about the accounting issues.

Shares fell to their lowest level in nearly three years.